Packaged Current Accounts

Packaged accounts, also sometimes referred to as 'with-benefits accounts’ or ‘fee-charging current accounts’ are typically upgraded version of traditional current accounts which for a monthly fee, offer a breadth of benefits and extras such as breakdown cover and travel insurance together with standard current account features. A number of different banks and building societies currently offer packaged accounts in the UK so ensure you get the right account for your needs by using our simple comparison tables below.

	Nationwide FlexDirect A bank account that gives you additional benefits	5%	£1,000.00	£0.00
		** A bank account that gives you additional benefits **
	Santander 123 Account Pay a monthly account fee of £2	3%	£500.00	£0.00
		** Cashback on household bills and interest on bank balance - monthly fee of £2 applies **
	Nationwide FlexAccount Access a range of exclusive offers	0%	£0.00	£0.00
		** The account that gives you more for free **
	RBS Select Account Free iPhone app	0%	£0.00	£0.00
		** Free everyday banking - no monthly charge **
	NatWest Select Platinum Insurance and protection benefits	0%	£0.00	£0.00
		** Insurance, Leisure and Banking benefits - £16 monthly fee applies **
	RBS Select Platinum Fantastic protection and leisure benefits	0%	£0.00	£0.00
		** Insurance, Leisure and Banking benefits - £16 monthly fee applies **
	NatWest Select Silver Account DVD rentals from LOVEFiLM	0%	£0.00	£0.00
		** Great if you like European Travel, Music & Film - £10 monthly fee applies **
	RBS Select Silver Account HMVdigital downloads	0%	£0.00	£0.00
		** Great if you like European Travel, Music & Film - £10 monthly fee applies **

Compare Packaged Accounts

Most UK packaged accounts offer the features and standard functionality of current accounts, including bank transfers, 24/7 online banking, automated direct debits, standing orders, credit and debit cards, although they all still vary slightly depending on the institution you select.

However, packaged accounts also offer different numerous other benefits. Again these vary by bank, building society etc, but often include elements which many consumers would buy separately and thus they can help you save a considerable amount of money. Some of the most common features included with packaged current accounts, are:

• Insurance policies – sometimes including travel, phone, gadget, ID fraud
• Motor vehicle breakdown cover
• Interest free (or reduced interest rate) overdraft – usually for a pre-defined period of time
• Foreign currency exchange with no (or reduced) commission fees
• Discounted rates for additional financial products offered by the bank or building society

What is the best packaged account?

In order to select the right packaged current account for your needs you should consider how you are going to use the account and what other products you would normally purchase as well. Try to have answers to the following questions and you should find selecting the best product for you a little easier…

(If you use your overdraft services often then you should calculate how much it would cost you under your new charges as this alone could make your packaged account very costly)

• From the available benefits which ones do I need?
• Is there a packaged account that includes all the benefits I would like to have? If not, which ones are more important to me and are included in the same offer?
• Do the benefits offered cover my needs? For example, in the case of insurance - is the cover offered sufficient for my needs? (NB. Individuals with certain medical conditions may not be covered for travel insurance)
• Are the overdraft charges higher than my current banking arrangements?

To make the most of your packaged current account ensure:

• That the benefits included will cost you less than if bought separately or under a different offer.
• That the insurance policy included covers your needs - usually the cover offered is pretty basic.
• That you find out whether you need to activate any of the included services; it will be a pity if you are paying for something that you can’t use
• That you need all the benefits included

New Legislation for Packaged Accounts

Given the increased uptake of packaged current accounts and recent mis-selling scandals the FSA (now the FCA – Financial Conduct Authority) was concerned about the possibility insurance policies being mis-sold through packaged accounts. Thus, since March 31 2013 a new set of rules has been in place.

Banks, Building Societies and any other type of organisation offering packaged current accounts must:

• Ensure that the customer is eligible to claim under all policies offered and he is informed about it.
• Check whether a policy is appropriate for the customer, and if not, inform him about it.
• Offer customers annual eligibility statements which urge them to check if their policies still cover their needs.

What alternatives are there to Packaged Accounts?

For many people who have grown up in the era of ‘free banking’ the idea of paying for bank accounts will seem very alien. Equally people who don’t need or want the features offered with packaged might find they are paying for something they will never use. Remember there are still good alternatives to packaged accounts in the UK. Many standard UK current accounts do not charge a monthly fee to customers and certain prepaid bank accounts will charge lower fees – of course they will also offer more limited functionality as a result.

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.